Mt. Gox, a Bitcoin exchange that closed down, is set to start refunding Bitcoin and Bitcoin Cash to its affected customers. This news has caused some worry in the cryptocurrency community about how this could affect the price of Bitcoin.
Experts believe that any potential sell-off from Mt. Gox customers is not likely to have a long-lasting impact on the market. Lennix Lai from OKX exchange thinks that many of the affected customers are long-term Bitcoin supporters who won’t rush to sell off all their holdings. Comparisons to past sell-offs show that the market should be able to handle this situation.
Some analysts, like Jacob Joseph from CCData, say that the market has enough liquidity to absorb any large sell-offs that may occur. There is also the possibility that some creditors may choose to accept a 10% reduction on their holdings to get their repayments early, which could help reduce selling pressure.
Alex Thorn from Galaxy Digital believes that fewer coins will be sold than expected, but even a small sell-off could still impact the market. Vijay Ayyar from Gemini exchange points out that the funds will be distributed to various recipients, which could lessen the impact on the market. However, the distribution process may take some time, adding another element to consider.
Looking ahead to July, analysts like Ali Martinez predict that Bitcoin could see a rebound in price based on historical trends. Martinez notes that Bitcoin has historically performed strongly in July, with an average return of almost 8%. The current support level is at $61,100, with resistance levels at $64,050 and $66,250 being crucial for Bitcoin to reach its previous all-time high.
Technical analysts like Rekt Capital also suggest that Bitcoin is forming a cluster at the Range Low of $60,600, which could lead to a potential rally back to the Range High at $71,500 throughout July. Currently, Bitcoin is trading at $62,630, showing a 2% increase in the last 24 hours.
Overall, while the Mt. Gox refund process may cause some short-term fluctuations in the Bitcoin market, experts remain confident that the overall impact will be manageable. The market seems prepared to absorb any potential sell-offs, and historical trends suggest that Bitcoin could see a positive performance in the coming month.